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The price of NIO 2024 models remains stable amidst the wave of computing power improvement and price reduction

夫星特九
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On February 22nd, NIO announced that the 2024 model will start pre ordering and will be delivered gradually starting from March 2024. It is understood that the biggest improvement of NIO's 2024 model lies in its computing power. All models in the series will adopt a new central computing platform ADAM, and NIO will implement a series of functions such as AI large models based on this platform in the future.
It is worth noting that in the recent intensive price reduction campaign by new energy manufacturers, the NIO 2024 model has chosen to improve its product cost-effectiveness by upgrading without increasing prices, while maintaining stable prices.
Computational power
The biggest improvement of the NIO 2024 model lies in the further increase in computing power. It is understood that the 2024 NIO model will adopt the new central computing platform ADAM. The platform is built by integrating one Qualcomm Snapdragon 8295 intelligent cockpit chip and four NVIDIA Orin X intelligent driving chips. Among them, the AI computing power of the Qualcomm Snapdragon 8295 chip has increased by about 8 times compared to the previous generation 8155, and the total computing power of four Nvidia Orin X chips has reached 1016 TOPS.
Based on the new computing power platform, NIO plans to gradually implement new intelligent features such as AI large model products and intelligent driving systems in the first half of the year. Among them, the AI large model NOMI GPT will be launched in the first quarter. This large model can currently recognize thousands of items through the car camera and complete color combinations for ambient lighting based on non color phrases. In terms of intelligent driving, the Global Navigation Assistance NOP+is planned to complete full user push in the second quarter.
In recent years, the competition for new energy vehicle products has been fierce, and the popularity of intelligence has increased. Since the middle of last year, the empowerment of the cockpit by large models has become a new battlefield for new energy vehicles. In addition to NIO, Ideals, Xiaopeng, and others have also announced plans to develop their own large models. Huawei also plans to integrate the Pangu large model into the Automotive World M9, and various car companies have chosen to enhance the intelligence and sensitivity of the cabin space through large model technology.
Guotai Junan analyst Zhu Feng explained that with the adoption of AI large model technology, the intelligent cockpit will not only be limited to single mode, common in car voice, navigation and other functions, but also closely meet consumer needs, enrich environmental control, health management, entertainment and information services, car condition monitoring and maintenance and other new functions.
In addition to computing power, the NIO 2024 model includes a series of other configuration upgrades. Taking the main models as an example, the 2024 ES6 and EC6 have been optimized through software to increase the CLTC driving range to 500km and 505km respectively, and will be delivered in March 2024; The 2024 ET5 will add an optional N-Box enhanced entertainment console, which will be delivered in April 2024. Meanwhile, the 2023 NIO model is still on sale, and the company will provide short-term car purchase benefits for the 2023 model.
Stabilizing prices
In addition to further increasing computing power, maintaining stable prices is another significant feature of the NIO 2024 model. It is reported that after the configuration upgrade, the starting prices of all NIO models will remain unchanged, with a clear intention of optimizing product strength to achieve an increase in cost-effectiveness.
Since the beginning of the the Year of the Loong, new energy vehicle manufacturers have repeatedly reported price cuts, and a new round of price war is looming.
On February 19th, BYD promoted multiple models such as the Qin PLUS and the destroyer 05 to the 70000 yuan level under the slogan "lower electricity than fuel". Subsequently, car companies such as SAIC GM Wuling, Changan Qiyuan, and Nezha Motors quickly followed suit and lowered the sales prices of their multiple models. Cui Dongshu, Secretary General of the National Passenger Car Market Information Joint Conference, analyzed that the fundamental reason for the recent price war in the passenger car market is the replacement of old technologies by new technologies and the replacement process of fuel vehicles by new energy vehicles. The price war in the national passenger car market will continue to be fierce in 2024.
However, the profit sharing model of new energy vehicles may also be diversified. Cui Dongshu suggested, "New electric vehicle products can promote brand high-end through rapid product iteration, continuously improving product configuration and battery life while keeping prices unchanged or even slightly decreasing, and enhancing users' cost-effectiveness through product strength."
The latest delivery data released by NIO shows that the company delivered 10100 vehicles in January 2024, a year-on-year increase of 18.2%. As of January 31, 2024, NIO's cumulative delivery volume reached 459600 vehicles, of which approximately 160000 vehicles were delivered throughout 2023, a year-on-year increase of 30.7%.
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